The company makes 420 units of product YBY a year, requiring a total of 460 machine-hours, 80 orders, and 10 inspection-hours per year. The product's direct materials cost is $48.96 per unit and its direct labor cost is $25.36 per unit. According to the activity-based costing system, the average cost of product YBY is closest to:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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XYZ has provided the following data from its activity-based costing system:
Activity Cost Pool
Total Cost
Total Activity
Assembly
$228,060
18,000 machine-hours
Processing orders
$ 34,068
1,600 orders
Inspection
$125,560
1,720 inspection hours
The company makes 420 units of product YBY a year, requiring a total of 460 machine-hours, 80 orders, and 10 inspection-hours per
year. The product's direct materials cost is $48.96 per unit and its direct labor cost is $25.36 per unit.
According to the activity-based costing system, the average cost of product YBY is closest to:
O a. $94.00 per unit
O b. $94.26 per unit
Oc. $93.99 per unit
O d. $95.77 per unit
е.
None of the given answer is correct.
Transcribed Image Text:XYZ has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $228,060 18,000 machine-hours Processing orders $ 34,068 1,600 orders Inspection $125,560 1,720 inspection hours The company makes 420 units of product YBY a year, requiring a total of 460 machine-hours, 80 orders, and 10 inspection-hours per year. The product's direct materials cost is $48.96 per unit and its direct labor cost is $25.36 per unit. According to the activity-based costing system, the average cost of product YBY is closest to: O a. $94.00 per unit O b. $94.26 per unit Oc. $93.99 per unit O d. $95.77 per unit е. None of the given answer is correct.
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